FIN5001 Quantitative Methods for Finance

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FIN5001

Quantitative Methods for Finance (Pre-term, 2024)

HW03 Due July 25, 5:00 pm

Part 1: Matrix Algebra

1. Let  If  solve for .

2. Suppose  Obtain C = A + B.

3. Given  find the inner product of a and b.

4. If  and  calculate MN. Can we have NM?

5. Given  find A'

6. Calculate the following matrix product: 

7. For a simple linear regression model: 

Use vector or matrix notations to express the regression model. Can you use matrix operations to solve for the parameter estimation of the model?

Part 2: Mathematics for Finance

1. Obtain the first order derivatives of the following functions.

2. Find the horizontal tangents of 

3. Find the partial derivatives of 

4. Find the extreme values of 




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